Dollar and stocks slide on Trump’s protectionism

The US dollar fell to a seven-week low against a basket of key world currencies on Monday and global stock markets declined amid investor concerns over protectionist rhetoric by US President Donald Trump. US Treasury yields dipped and gold rallied as demand for safe-haven assets was boosted by Mr Trump's stance on trade. Yesterday, President Trump told US manufacturing executives he would impose a hefty border tax on firms that import products into the United States after moving American factories overseas. Fears of a protectionist White House, and scant details on proposed tax cuts, infrastructure spending and deregulation, have prompted some investors to reassess the level of possible future government stimulus to bolster the US economy. The dollar index, which measures the greenback against six major rivals, was down 0.51 per cent at 100.23. A steep rally in the dollar following Trump's election victory in November had been spurred by expectations the new administration would focus on pro-growth fiscal stimulus, tax cuts, and regulatory reform that would likely lift inflation and prompt the US Federal Reserve to raise rates more quickly this year. The safe-haven yen has been...

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